document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=907602>Question 907602</A>: <I><SPAN STYLE=\"word-break: break-all;\"> An investment broker reports that the yearly returns on common stocks are approximately normally distributed with a mean return of 12.4 percent and a standard deviation of 20.6 percent. <BR>\n" );
document.write( "On the other hand, the firm reports that the yearly returns on tax free municipal bonds are approximately normally distributed with a mean return of 5.2 percent and a standard deviation of 8.6 percent. Find the probability that a randomly selected: <BR>\n" );
document.write( "A) Common stock will give a positive yearly return<BR>\n" );
document.write( "B)Tax free municipal bond will give a positive yearly return.<BR>\n" );
document.write( "C) Common stock will give more than a 10 percent return.<BR>\n" );
document.write( "D) Taxfree municipal bond will give more than a 10 percent return.<BR>\n" );
document.write( "E) Common stock will give a loss of at least 10 percent.<BR>\n" );
document.write( "F) Tax free municipal bond will give a loss of at least 10 percent  </SPAN>\n" );
document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #550459 by </B><A HREF=/tutors/aboutme.mpl?userid=reviewermath><B>reviewermath(1029)</B></A><img src=\"/images/stars/stars-12.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=reviewermath><IMG SRC=http://www.algebra.com/images/aboutme-small.gif BORDER=0 alt=\"About Me\" VALIGN=MIDDLE></A>&nbsp;<IMG SRC=http://www.algebra.com/cgi-bin/show-face.mpl?user=reviewermath><BR>You can <A HREF=\"/cgi-bin/embed-solution.mpl?show=1&solution=550459\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> An investment broker reports that the yearly returns on common stocks are approximately normally distributed with a mean return of 12.4 percent and a standard deviation of 20.6 percent. <BR>\n" );
document.write( "On the other hand, the firm reports that the yearly returns on tax free municipal bonds are approximately normally distributed with a mean return of 5.2 percent and a standard deviation of 8.6 percent. Find the probability that a randomly selected: <BR>\n" );
document.write( "A) Common stock will give a positive yearly return<BR>\n" );
document.write( "P(Z > <IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=%280-12.4%29%2F20.6 ALIGN=MIDDLE  ALT=\"%280-12.4%29%2F20.6\"   DISABLED_style= \"max-width:90%; height:auto;\" >) =<IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=highlight%280.7264%29 ALIGN=MIDDLE  ALT=\"highlight%280.7264%29\"   DISABLED_style= \"max-width:90%; height:auto;\" >\r<BR>\n" );
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document.write( "B)Tax free municipal bond will give a positive yearly return.<BR>\n" );
document.write( "P(Z > <IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=%280-5.2%29%2F8.6 ALIGN=MIDDLE  ALT=\"%280-5.2%29%2F8.6\"   DISABLED_style= \"max-width:90%; height:auto;\" >) =<IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=highlight%280.7273%29 ALIGN=MIDDLE  ALT=\"highlight%280.7273%29\"   DISABLED_style= \"max-width:90%; height:auto;\" >\r<BR>\n" );
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document.write( "C) Common stock will give more than a 10 percent return.<BR>\n" );
document.write( "P(Z > <IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=%2810-12.4%29%2F20.6 ALIGN=MIDDLE  ALT=\"%2810-12.4%29%2F20.6\"   DISABLED_style= \"max-width:90%; height:auto;\" >) =<IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=highlight%280.5464%29 ALIGN=MIDDLE  ALT=\"highlight%280.5464%29\"   DISABLED_style= \"max-width:90%; height:auto;\" >\r<BR>\n" );
document.write( "\n" );
document.write( "D) Taxfree municipal bond will give more than a 10 percent return.<BR>\n" );
document.write( "P(Z > <IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=%2810-5.2%29%2F8.6 ALIGN=MIDDLE  ALT=\"%2810-5.2%29%2F8.6\"   DISABLED_style= \"max-width:90%; height:auto;\" >) =<IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=highlight%280.2884%29 ALIGN=MIDDLE  ALT=\"highlight%280.2884%29\"   DISABLED_style= \"max-width:90%; height:auto;\" ><BR>\n" );
document.write( "E) Common stock will give a loss of at least 10 percent.<BR>\n" );
document.write( "P(Z  &#8804; <IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=%28-10-12.4%29%2F20.6 ALIGN=MIDDLE  ALT=\"%28-10-12.4%29%2F20.6\"   DISABLED_style= \"max-width:90%; height:auto;\" >) =<IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=highlight%280.1384%29 ALIGN=MIDDLE  ALT=\"highlight%280.1384%29\"   DISABLED_style= \"max-width:90%; height:auto;\" ><BR>\n" );
document.write( "F) Tax free municipal bond will give a loss of at least 10 percent<BR>\n" );
document.write( "P(Z  &#8804; <IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=%28-10-5.2%29%2F8.6 ALIGN=MIDDLE  ALT=\"%28-10-5.2%29%2F8.6\"   DISABLED_style= \"max-width:90%; height:auto;\" >) =<IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=highlight%280.0386%29 ALIGN=MIDDLE  ALT=\"highlight%280.0386%29\"   DISABLED_style= \"max-width:90%; height:auto;\" > </SPAN>\n" );
document.write( "</TD></TR></TABLE>\n" );